South Korean regulator: New encryption regulations may threaten user data security

According to CryptoNews, South Korean regulators have warned that there are some problems in the upcoming regulation of cryptocurrency exchanges, which may cause customers' sensitive data to be compromised due to legal issues.

According to a report from South Korea's financial regulator Kookmin Ilbo, the Financial Intelligence Unit (FIU), which has been responsible for regulating exchanges since March 25, is concerned about the fate of user data of exchanges that ultimately fail to obtain a license. South Korean law requires companies to clean up their databases and securely delete sensitive user data within 6 months of no longer needing access. However, in some cases where companies have collapsed or are in trouble after their license applications have been rejected, the FIU is concerned that data may be leaked or unaccounted for. Therefore, the FIU recommends that crypto exchanges hold off on requesting such user data from customers until their applications are approved or rejected.